Belden (NYSE: BDC) reported fiscal Q3 2026 revenue of $966 million,
up 38% from $698 million, while GAAP diluted EPS moved to a loss of
$0.29 from earnings of $1.41. Adjusted EPS increased 15% to $2.26, and
record orders, higher adjusted margins, and improved cash flow
contrasted with acquisition-related charges that weighed on GAAP
results.

Core Results

Belden’s revenue reached a quarterly record, with organic growth of
11% showing that the increase was not solely acquisition-driven.
However, GAAP profitability moved sharply lower because the Ruckus
acquisition added substantial purchase-accounting expenses.

On an adjusted basis, EBITDA grew faster than revenue and its margin
expanded. Quarterly operating cash flow and free cash flow also
increased despite the reported net loss.

MetricQ3 2026Q3 2025Year-over-Year ChangeRevenue$966.0 million$698.2 million+38%GAAP gross profit / margin$338.8 million / 35.1%$263.2 million / 37.7%About +29% / -260 bpsGAAP operating income / margin$16.8 million / about 1.7%$76.3 million / about 10.9%About -78% / -920 bpsGAAP net income (loss) / margin$(11.4) million / (1.2)%$56.7 million / 8.1%Swung to a lossGAAP diluted EPS$(0.29)$1.41Swung to a lossAdjusted EBITDA / margin$171.1 million / 17.7%$118.6 million / 17.0%+44% / +70 bpsAdjusted diluted EPS$2.26$1.97+15%Operating cash flow$129.6 million$105.0 millionAbout +23%Free cash flow$81.9 million$65.4 millionAbout +25%
Orders and Data Center
Demand

Orders reached a record $1.017 billion, increasing 46% as reported
and 16% organically. Because orders exceeded quarterly revenue, Belden
recorded a book-to-bill ratio of 1.05x, indicating that demand entering
the fourth quarter remained above the quarter’s shipment level.

Belden also signed an agreement to supply $100 million of fiber
assemblies to a major U.S. data center customer in 2027. Management now
expects the data center business to grow by more than 50% next year. The
agreement is a forward demand indicator rather than revenue recognized
in Q3 2026.

Management attributed demand across its markets to investment in AI
and automation infrastructure, ranging from data centers to factory
environments. It also reported a growing cross-selling pipeline from
Ruckus, although no numerical cross-selling contribution was
disclosed.

Ruckus
Lifts Scale but Acquisition Accounting Drives the GAAP Loss

The difference between reported and organic growth illustrates the
immediate impact of Ruckus. Of Belden’s 38% reported revenue increase,
acquisitions and divestitures contributed 24 percentage points, copper
pass-through pricing contributed three points, and organic growth
contributed 11 points.

At the same time, GAAP results included $100 million of noncash
Ruckus purchase-accounting charges related to acquired intangible
amortization and an inventory fair-value step-up. These items helped
push GAAP gross margin down to 35.1% and contributed to the quarterly
net loss.

The adjusted figures show a different operating picture. Adjusted
gross margin increased to 41.5% from 38.2%, while adjusted EBITDA margin
rose to 17.7%. This GAAP-to-adjusted gap is central to evaluating the
quarter: the acquisition expanded revenue and adjusted earnings, but its
accounting and integration effects substantially reduced reported
profit.

Interest expense also rose to $41.8 million from $11.6 million,
adding pressure below operating income. Belden recorded a $14.2 million
income tax benefit, which partially offset the operating and
interest-related impact on net income.

Cash Flow and Balance Sheet

The noncash nature of much of the acquisition-related expense helps
explain why cash flow improved even as Belden reported a GAAP loss.
Capital expenditures increased to $47.8 million from $39.7 million, but
quarterly free cash flow still rose to $81.9 million.

The Ruckus transaction materially changed the balance sheet. During
the first nine months of 2026, Belden used $1.87 billion for
acquisitions. Long-term debt stood at $3.03 billion on September 27, up
from $1.29 billion at the end of 2025, while cash and cash equivalents
were $380.7 million versus $389.9 million. The higher debt balance and
associated interest expense make leverage reduction and sustained cash
generation important measures of integration progress.

Q4 2026 Guidance

Belden’s fourth-quarter outlook assumes current market conditions
continue. The $970 million revenue midpoint is roughly level with Q3’s
record revenue, while the adjusted EPS range points to broadly similar
sequential profitability.

MetricQ4 2026 GuidanceRevenue$960 million-$980 millionGAAP diluted EPS$0.24-$0.39Adjusted diluted EPS$2.20-$2.35

The expected difference between GAAP and adjusted EPS includes $1.19
per share of intangible amortization, $0.39 of severance, restructuring
and integration costs, and $0.38 of acquisition and divestiture
adjustments.

Recent Insider Transactions

The supplied six-month insider summary categorized 39,125 shares
across 13 purchase-side transactions and 1,900 shares sold in one
transaction, producing net purchases of 37,225 shares. The underlying
recent filings show that most entries were zero-price awards or gifts
rather than cash purchases, so the aggregate should be interpreted with
that distinction in mind.

DateInsiderRoleReported TransactionPriceReported ValueSep. 15, 2026Brian LieserOfficerSale$114.39$217,341Aug. 12, 2026Brian Edward AndersonOfficerStock gift$0.00$0Aug. 7, 2026Brian Edward AndersonOfficerStock gift$0.00$0Aug. 3, 2026Lance C. BalkDirectorStock gift$0.00$0Jul. 2, 2026Bartolomeo GiordanoOfficerStock award$0.00$0May 21, 2026Jonathan C. KleinDirectorStock award$0.00$0May 21, 2026Gregory James McCrayDirectorStock award$0.00$0May 21, 2026Judy Lynne Gawlik BrownDirectorStock award$0.00$0May 21, 2026Adel Al SalehDirectorStock award$0.00$0May 21, 2026Vivie LeeDirectorStock award$0.00$0

Brian Lieser’s transaction represented the only reported sale in the
six-month summary and involved 1,900 shares. The supplied data did not
include share quantities for the individual grants and gifts.

Risks Investors Need to
Watch

Ruckus integration: Acquisitions contributed 24
percentage points of reported revenue growth, making integration,
customer retention, and cross-selling execution important to sustaining
the expanded revenue base.
Debt and interest expense: Long-term debt increased
to $3.03 billion, while quarterly net interest expense rose to $41.8
million. Higher financing costs could continue to limit the conversion
of operating gains into GAAP net income.
Data center project execution: The $100 million
fiber agreement supports the 2027 outlook, but its timing and
concentration with a major customer create execution and
revenue-recognition dependencies.
Macroeconomic and supply-chain conditions:
Management described underlying demand as strong but remained cautious
about the near-term macroeconomic and supply-chain environment, both of
which could affect order timing, input availability, and margins.

Summary

Belden’s fiscal Q3 2026 combined record revenue, orders, adjusted
EBITDA, and improved cash flow with a GAAP loss caused largely by
Ruckus-related purchase accounting and higher interest expense. Organic
growth and the data center agreement support the underlying demand
picture, while the main issues ahead are converting record orders into
revenue, integrating Ruckus, and managing the larger debt burden without
sacrificing margins or cash generation.